The Mumbai-based J B Chemicals and Pharmaceuticals Ltd (JBCPL), one of the major domestic players which has operations in Russia, is expected to meet the target of more than 20 per cent growth in the Russian market in the current financial year.
The company, which is currently marketing around 50 products in the Russian market through its own division in Moscow, has recorded revenue of US$45 million last year. The company is expecting to continue its growth in the over-the-counter (OTC) market to achieve a target of US$65 million revenue in the current financial year, according to D B Mody, director, JBCPL. JBCPL is the third largest Indian pharmaceutical company in Russia.
"We are focusing on the fast growing OTC market in Russia. Upto September, the company has recorded a growth as per our set target and we expect to reach US$65 million revenue in the current financial year," said Mody. However, he added that currently, the Russian market is also affected by the global financial crisis and the depreciation of the currency - Ruble - against the US Dollar is a negative factor.
"We are closely watching the global financial crisis and its effects in the Russian market. Though it is not good enough to spend more money in the market at present, we will be continuing our growth through exploring the OTC market, especially the anti-allergic preparations. Almost 85 per cent of our products are in OTC segment," said Mody about the future operations.
The company is currently supplying almost 20 per cent of the products through its own warehouse in Russia. The company has its own division - Unique Pharmaceutical Laboratories - in Moscow with 250 employees to handle the operations in the region. The warehouse is well equipped to cater the needs of the small scale distributors in the region.
Doctor Mom is the flagship product of JBCPL in Russian market. Doktor Mom, a purely herbal product, is widely marketed by Unique in Russia, Ukraine and CIS countries. In 2005 the Russian council voted it as the 'Super Brand' in the country. Of late, Unique Pharmaceuticals Ltd has out-licensed Doktor Mom brand to Ranbaxy for Romania where Ranbaxy will market the brand and Unique will manufacture it.
The company is strengthening its presence in the Russian market, the flagship market of JBCPL, by aggressive advertisement spends, continuous introduction of new niche products and brand extensions and created focused hospital, ethical and OTC divisions, according to the company sources.